Question : The saving function of an economy is given as S=-40+0.5Y. Calculate the total increase in income if investment expenditure increases by Rs. 600 crore.
Option 1: 1100
Option 2: 1200
Option 3: 1300
Option 4: 1400
Correct Answer: 1200
Solution :
Question : The saving function of an economy is given as S= -40+0.40Y. If the planned investment is Rs. 250 crore. Calculate aggregate demand at income of Rs. 400 crore.
Question : The equilibrium level of income in an economy is Rs. 3000 crore. The autonomous consumption expenditure is equal to Rs.250 crore and investment expenditure is Rs. 1000 crore. Calculate saving function.
Question : The saving function of an economy is given as S= -40+0.40Y. If the planned investment is Rs. 250 crore, Calculate equilibrium level of income in the economy.
Question : In an economy, the investment expenditure is Rs. 80 crore and consumption function is C= 80+0.75Y. Calculate equilibrium level when planned investment expenditure is increased by Rs. 10 crore.
Question : In an economy, the investment expenditure is Rs. 80 crore and consumption function is C= 80+0.75Y. Calculate equilibrium level when planned investment expenditure is decreased by Rs. 20 crore.
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